Reportstack

Emerging Opportunities in Singapore's Cards and Payments Industry New Report

Naperville, IL -- (SBWIRE) -- 03/07/2013 -- The cards and payments industry as a whole grew at a CAGR of 8.33% in terms of the number of cards and at a CAGR of 7.12% in terms of transaction value during the review period. During the forecast period, the cards and payments industry is expected to grow at a CAGR of 4.95% in terms of number of cards and 4.88% in terms of transaction value. In terms of transaction value, the cards and payments industry is dominated by the debit card category which constituted 64.3% of the overall industry in 2012. The share of the debit card category in the overall industry is expected to be 61.8% in 2017. In terms of transaction value, the debit card category grew at a CAGR of 5.55% during the review period and is expected to grow at a CAGR of 4.27% during the forecast period. The debit card category is expected to show the largest growth in terms of transaction value as customers prefer income-based consumption over credit-fuelled consumption.

Key Highlights
- The cards and payments industry as a whole grew at a CAGR of 8.33% in terms of number of cards and at a CAGR of 7.12% in terms of transaction value during the review period. During the forecast period, the cards and payments industry is expected to grow at a CAGR of 4.95% in terms of number of cards and 4.88% in terms of transaction value.
- Mobile commerce transactions show a huge potential for growth during the forecast period and are expected to expand the scope of card-based payments during the forecast period. M-commerce transactions grew from SGD15.2 million (US$10.78 million) in 2010 to SGD791.5 million (US$629.91 million) in 2012, at a CAGR of 273.07%.
- Banks follow highly competitive strategies when pricing cards in order to expand their customer base. The annual interest rates charged by most leading banks range between 24% and 25%. Banks also offer an interest-free period to customers to encourage prompt repayment.
- Banks target large customer bases such as Chinese-Singaporeans, NUS alumni, SingTel customers and members of the National Trades Union Congress (NTUC). Chinese-Singaporeans constituted 74.1% of the overall population in 2011.